If you are a homeowner here in the Long Branch, New Jersey area, then you probably have some sort of budget that accounts for monthly bills, such as the mortgage, utilities and groceries. This often doesn’t leave a ton of money left over for things like home maintenance, so it would be a wise decision to be financially forward-thinking with your projects. Hi, I’m Michele Irizarry, CEO and Broker of Shore Prime Properties.
Being organized and prepared allows you to not only stretch your budget over the course of the year, but also target your timelines intentionally, which is a win no matter how you look at it. Please be sure to follow our page or subscribe to our YouTube channel to stay in touch with our latest real estate tips and ideas.
Do an overview. The first thing you should do is to look over your 2022 calendar, ask yourself, and then pencil in what projects you plan to get done in each season. For example, if you want to replace your windows, would summer be a good or a bad time? It might be ideal if you have kids because you can focus more attention on the project. The potential downsides, though, are long wait times to start the project because, again, many people prefer work to be done before the school year commences, and hot air streaming into your house while the work is being done. These are the types of balancing acts you can expect to address as you plan ahead.
Cut back and save. Only you know your household spending habits, so here are some things to consider as you anticipate saving for your 2022 projects. Prioritize. There are probably some things that you can easily cut out of your daily spending, such as coffee runs, eating out for lunch, and online shopping. Determine which purchases can be eliminated and then make a list of your priorities. Monitor your accounts frequently. Out of sight, out of mind should not be your money mantra.
If you normally wake up and check Facebook and Twitter, consider adding your bank accounts to that list, too, as you always will know where your finances stand. Create a dedicated savings account. If you have already created a dedicated savings account, great, you’re that much closer to streamlining your budget. If you don’t, setting one up is an easy first step to kick off your budgeting journey. Decide how much you want to add to this account every month or increase the amount if you already contribute regularly.
Put extra money away. This could mean setting aside anything from tax refunds to an end-of-year bonus. It’s tempting to spend this extra money on a new outfit or an expensive dinner, but putting it away in a savings for home projects will pay off in the long run. Try the 50-20-30 Rule. This principle states that you should dedicate 50% of what you earned to necessities, 20% to savings, and 30% to things that you want, such as gym memberships, daily coffee, and eating out with friends. Follow this rule consistently to add to your savings, and if feasible, tweak the final two to 25% each to help pay for your projects and take less out of your nest egg.
Do your due diligence. Once you have a grasp of our household spending habits and a budgeting plan, you can start looking at companies and materials to get the best bang for your buck. Time is on your side during this initial planning process, so take advantage of it to be thorough with your research. If you have projects that will require you to hire contractors, look at reviews, and better yet, use a home improvement website like Angi to get a sense of project rate estimates in our area.
As a bonus, businesses will often offer discounts if you order a job through sites like Angi. You can also lean on the trust of your local community. If you are part of the local Facebook Group or on the Nextdoor app, you can ask around for suggestions. You may get a glowing review for contractors, be able to see their handiwork up close, and get an idea of how much they charge.
Taking the DIY route? You should be just as diligent with your materials and tools. You likely have tried and true brands that you love, but you might be surprised to discover that there are better options out there in terms of quality or price. For example, say you need lumber for a deck project. You may instinctively go to a big box store, but don’t overlook your local lumberyard or sawmill. It may have a bigger selection, higher quality wood, and better prices.
Think outside the box. With your project schedule in place, you need to plan ahead to determine how you will pay for it all. Fortunately, there are many cost-saving options out there. Combine projects. If you and your neighbor use the same lawn care company, you might get a multi-home discount. Get multiple offers. Competition usually drives prices down, so estimates from several contractors will help. Schedule offseason work. For most contractors, peak season is during warmer weather, so if it’s feasible, schedule a project like a window or roof replacement in late fall or winter to help save money.
Do work yourself. If you were planning a kitchen remodel, for example, you could easily tackle the hardware or even the backsplash, saving you money on labor costs. In addition, searching for deals could save you hundreds or even thousands of dollars. For example, a roofing company may have an interest-free offer for a year. That would allow you to spread out the payments at no extra cost as long as you commit yourself to paying it off completely over those next 12 months. Just make sure to ask questions and read the fine print on both the offer and the contract.
Home projects can be exciting as they can transform your living space and potentially increase your return on investment when you sell. Preparing and budgeting wisely can go a long toward how satisfied you are with the results. Should you need any advice on home renovations, feel free to reach out to us here at Shore Prime Properties. I’m Michele Irizarry, selling prime real estate at the Jersey Shore.
